Rishi Sunak bets on Goldilocks economy 27 Oct 2021 The UK finance minister is relying on tax hikes and an economic rebound to spend more while shrinking the budget deficit to 3.3% of GDP in the next fiscal year. Hopes of pre-election giveaways hinge on easing supply disruptions, lower inflation and solid growth. It’s a long shot.
Moving carbon goalposts will be a wrenching burden 27 Oct 2021 The work required to make a net-zero transition is far harder than regularly announced political targets suggest. A soccer team in Taranto, Italy, home to Europe’s largest and most notorious steel mill, offers a glimpse into the economic struggles facing cities the world over.
Xi’s green reticence is partly trade-war ploy 27 Oct 2021 China’s president seems unlikely to attend the UN climate summit in Glasgow, and the country’s updated plans to cap emissions look unimpressive. Beijing may want to extract Western concessions for more ambitious carbon targets. Its environmental cleanup will proceed regardless.
Road to COP: Sealing the deal 26 Oct 2021 Seasoned climate change lawyer Rick Saines received recognition from the French state for his role in making the 2015 Paris Agreement a landmark success. With days to go until Glasgow’s equivalent COP26, he chatted to George Hay about how this one could pan out.
Australia’s climate plans amount to giant COP-out 26 Oct 2021 Prime Minister Scott Morrison has abrogated responsibility to states for an underwhelming 2030 emissions target. His 2050 net-zero goal also sees a long future for fossil fuels and relies on untested technology. It’s reasonable to expect more from a country on the front lines.
India Insight: Climate fight goes way beyond coal 26 Oct 2021 A green agenda supports Narendra Modi’s goal to boost the nation’s self-sufficiency. India’s tycoons aim to develop and export the cheapest, solar-generated hydrogen. Private capital will help renewables power economic growth, but coal and net zero are the elephants in the room.
Trump SPAC is the last thing U.S. watchdogs need 22 Oct 2021 A blank-check firm’s deal with former President Donald Trump could be a toxic cocktail for top markets cop Gary Gensler. Not because of the potential for investor abuse, but because it risks drawing the SEC and other regulators further into a counterproductive political quagmire.
Lockdown scars will linger Down Under 22 Oct 2021 With a 70% vaccination rate, Melbourne is ending its record run of strictly confining a fifth of Australia’s population. A burst of consumer spending should help the economy bounce back. The tab for mental health strains, closed borders and related issues keeps growing, however.
Viewsroom: Oz goes green-ish; “Squid Game” 21 Oct 2021 Australian climate policy is a work in progress, and Antony Currie fears the country’s net-zero plans may yet prove to be a damp squib. On the other hand, the South Korean drama is anything but: Jennifer Saba explains why the show is a major victory for Netflix and its investors.
Mario Draghi can play hardball with Andrea Orcel 21 Oct 2021 UniCredit’s boss wants the Italian premier to inject 7 bln euros into bailed-out bank MPS before he buys it. The state needs to sell its stake to meet EU rules, but taxpayers may balk at another large handout. Seeking an extension from Brussels may work to Rome’s advantage.
UK’s net-zero bill is less painful than it looks 20 Oct 2021 Britain’s pre-COP26 investment pledges augur ill for securing up to 60 bln pounds a year of mostly private capital to cut CO2 emissions. Yet unlike peers, it now has a solid net-zero strategy. If that wins over investors, other states may decide to offer similarly clear roadmaps.
Chinese inflation sneaks closer to global shoppers 21 Oct 2021 The country’s consumer prices stayed flat despite soaring commodity costs. That’s due to volatile pork prices and weak local spending. But the energy crisis and strong exports raise the risk that stretched manufacturers pass the higher costs on to customers at home and beyond.
Powell could redeem index-fund trading blot 20 Oct 2021 The Fed chair sold a $1 mln-plus holding last year. Owning broad market funds avoids many conflicts, but the move still looks bad amid intense scrutiny of other officials' trading and Powell's possible renomination. He could set an example by putting his assets in a blind trust.
First bitcoin ETF is test for fans and watchdogs 19 Oct 2021 ProShares’ new U.S. fund based on bitcoin futures lacks the direct holdings enthusiasts might prefer. But it's a way to get tradable exposure without the hassle of digital wallets and such. An orderly debut could ease regulators' resistance to ETFs that buy crypto directly.
Road to COP: Making companies do better 19 Oct 2021 Anne Simpson is one of the key figures in U.S. climate finance. As head of Board Responsibility at U.S. pension fund CalPERS, it’s her job to give companies a hard time if they shirk on decarbonisation. Ahead of November’s critical COP26 conference, she chatted to George Hay.
Crypto puts U.S. and El Salvador in the same boat 18 Oct 2021 Hispanic and Black people are top American owners of digital currencies. Discrimination and lagging access to financial services are drivers and are among the better reasons why the Central American nation turned to bitcoin. It’s a lost opportunity for traditional banks.
Capital Calls: Klarna, French vaccine, Philips 18 Oct 2021 Concise views on global finance: The $46 bln Swedish buy-now-pay-later company tries to outrun Britain’s financial watchdogs; Valneva’s Covid-19 shot may prove better than the UK’s home-grown version; the industrial giant sees light at the end of the supply-chain tunnel.
London’s IPO revamp gets its cautionary tale 18 Oct 2021 THG’s founder is giving up his golden share in the stricken online retailer, just as regulators prepare to make it easier for executives to keep control after listing. It’s a timely reminder of the benefits of “one-share-one-vote” governance. It’s not too late to turn back.
China growth is stuck in low gear for the duration 18 Oct 2021 Economic expansion slowed to 4.9% last quarter as austerity, Evergrande fallout, Covid-19 and a power crunch bit. President Xi Jinping, though, is targeting longer-term issues like inefficient growth and inequality. That’s a cue for China-dependent markets to brace for impact.
Capital Calls: Real estate distress is tricky call 15 Oct 2021 Concise views on global finance: Barry Sternlicht’s Starwood Capital has raised a $10 bln fund to buy struggling buildings. With the pandemic's long-term effects unclear, the key will be avoiding those destined to remain empty.